FRANSABANK, a commercial bank set up in 1921, is today Lebanon’s 4th largest bank by the size of its balance sheet and its result. It operates via the country’s most extensive network of bank branches (124) and is present in 8 other countries in the Middle East and North Africa region, Europe and Africa. It offers a wide range of banking and financial products, including services to individuals and companies, investment products, private banking and insurance. Finally, FRANSABANK is a partner of a number of development banks and international financial institutions, including PROPARCO since 2004.
This new operation involves a USD 18m loan. It will aim to support viable Lebanese companies (corporates and SMEs), but which are experiencing difficulties related to a complicated local economic context.
It is the third cooperation action between FRANSABANK and PROPARCO, following two initial operations in 2004 and 2010, and is taking place after the establishment of a “quadripartite” partnership between Agence Française de Développement Group, PROPARCO, Bpifrance and FRANSABANK in July 2016.
This new project will support Lebanon’s economic fabric by refinancing SMEs and local corporates active in various sectors, in particular health, tourism and the agri-food industry.
PROPARCO’s financing will also allow FRANSABANK to offer a more long-term range of financing and with maturities that are currently difficult to access for Lebanese companies.
Furthermore, this operation will contribute to supporting employment in FRANSABANK, with an expected staff increase of some 20% over the next 5 years.